Industrial Application Of Energy Audit Assignment Sample

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Introduction of Industrial Application Of Energy Audit Assignment

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According to the statistics of the year 2019, the “Commercial and miscellaneous Services”, sector had the highest rate of energy consumption in the United Kingdomwith a consumption of “14615” “kilo tonnes of oil equivalent (ktoe)” of energy. It has a mix of fuel in the proportion of Electricity at “43 %”, Natural gas at “34 %” and other fuels at “23 %”. It is preceded by the sector of “Chemical Manufacturing “and“Iron and Steel manufacturing” with a combined energy consumption of “8614” “Kilo tonnes of oil equivalent”. Energy audits could be conducted in various industrial facilities and assets of such sectors for facilitating effective and efficient assessment of energy and recommendation of practice and mechanisms to bring down and diminish the costs and consumption and ensure complete utilisation of energy resources to avoid wastage. 

1. Challenges and industrial energy audit opportunities along with type of energy audit

Challenges of energy audit 

Inefficient and inadequate Review of Installed energy systems:Industrial plants have Energy systems which are the measures taken up by companies to reduce their expenditure and maximise profitability. Systems are installed for fans, motors, pumps, steam and compressed air installed in the industries with distinctive production automation and processes (Linjordet et al. 2020). Measures for improving energy efficiency and exercising the opportunities to overcome the challenges faced in energy audits could be discussed according to specific industries. 

Inflated and amplified Estimation of profits: The high ratio between working and apparent power that is the power factor would state efficient utilisation of electrical energy in the industry. A low factor could be avoided by conserving energy, replacement and installation of capacitors(Kontokosta, 2020). 

Substandard Representation of systems Installation :  A Motor management plan is crucial in building the strategy of the motor management system which could be achieved by conducting a survey , developing guidelines related to breakdown and repair which could result in savings of in the range of “2 % to 30” % (Efficiency Partnership, 2004)”.Industrial audit opportunities 

 Process Flow for Audit Program

(Source:, 2022)

Audit opportunities in Motors Systems

A facility’s motor systems and its efficiency could be improved by following the approach of installation of “pumps”, “compressors” and “pumps” for increasing the efficiency and gaining optimization.

Improvement scope: prevention of overloading, imbalance, lubrication and ventilation of motors, could be achieved by creating an inventory for spares management, specifying and allotting a team for taking decisions related to specific purchase and repair and implementation of a program for maintenance and prevention. Adequate maintenance, regular monitoring and reducing the leakages in pipelines could help in achieving optimum utilisation of such compressors. Minimization in the pressure of the installed fan systems could reduce costs and help in increasing the life of the fan systems. 

Types of Energy Audits and its application

The audit to be conducted in a specific industry depends on factors such as its type, size and its undertaking. There are 2 types of audits which could be applied in any industry which are discussed below, 

Preliminary Audit 

A “preliminary audit” is more like a “walk through audit” .Such an audit is conducted for a short period of time and there is no or very less requirement of data .Such data could be obtained quickly and easily as it is readily available for conducting a simple analysis and therefore providing fundamental outcomes and opportunities for effective and efficient usage of magnitude of energy (Cooremans, 2019).

Application of Preliminary Audit 

The audit procedures could be applied for simple calculations of payback period of the investments made and measures taken for saving power and establish the relationship between the investment made and savings in cost which could be economically profitable.

Detailed Audit 

“Detailed audit” can be also called “diagnosed audit” .It is a comprehensive and long audit procedure requiring the detailed data of the industry as the name suggests .It suggests evaluation and Calculation of the data from the systems of inventory management in the systems of pumps, air compressors and motors.

Application of Detailed Audit

It brings forth a more reliable and calculated summary of consumed energy suggesting the methods for facilitation of improvement in the required areas including the evaluation and estimation of Internal Rate of Return, Net Present Value and Life Cycle costs for comparing present and future costs of alternative methods.

 Energy Audit Process

(Source:, 2022)

2. Types, phases and process of energy audit components relating to the Industrial Facility 




Type 1 : Preliminary Audit

A “preliminary audit” is more like a “walk through audit” .Such an audit is conducted for a short period of time and there is no or very less requirement of data (Lee et al. 2020).Such data could be obtained quickly and easily as it is readily available for conducting a simple analysis and therefore providing fundamental outcomes and opportunities for effective and efficient usage of magnitude of energy. 

Phase I:

Phase I could deal with the methodology involved in the preparation of the Energy Audit Report for the industry and the assets. It could deal with planning and organizing.

It would require the informal conversations with the employees, working and production and plant managers, of the unit (Mohite and Maji, 2020).

In such brief meetings, the complete planning could be assessed.

An energy assessment checklist could be prepared for assessing the various parameters on the basis of which the efficiency of the assets, the used equipments, their frequency of usage could be established by auditors who are experienced and qualified.

Planning :

Forecasting and preplanning of the activities that determine the scope of the Energy Audit.

 Formulation of an audit team of experienced and independent members who would decide the initial scope of the audit.

Development of audit procedure and tasks to be fulfilled according to the set targets.

Type II : Detailed Audit

“Detailed audit” can be also called “diagnosed audit” .It is a comprehensive and long audit procedure requiring the detailed data of the industry as the name suggests .It suggests evaluation and Calculation of the data from the systems of inventory management in the systems of pumps, air compressors and motors.

Phase II: The second phase is the phase of execution of the audit.

The second phase deals with the process of collection of data, primarily and preparation of flow diagrams.

Surveys could be conducted followed by regular and frequent monitoring and subsequent energy trials.

Phase III: The energy use of the industry could be analyzed and the opportunities for conservation, prevention and optimum utilization of energy recourses could be assessed. The cost cutting and benefits of such analysis are to be reported to the authorities of top management. Proper implementation of such suggestions could be tracked through follow-up.

Investigation: Inspection and scrutiny of all the elements within the scope of the energy audit for the purpose of assessing the efficiency, controls and load on the various systems.

Audit findings are to be summarized and presented in a format on the basis of the data and provide cost improvement measures.

Implementation: The outcome generated from the conduct of audit procedures are to be evaluated in the best possible way.

Actions of remedy for the purpose of reducing the wastage of energy

Sustain: Sustainability of the industry could be ensured by following the audit procedures and plans as mentioned in the above points.

Table 1: Types, phases and process of energy audit

Define the Energy Conservation Measures 

Energy conservative Measures could be defined as undertaken initiatives for the purpose of mitigating the energy that is consumed by the various installed systems and equipment in a motor or a chemical industry. Such measures could include a number of methods and work related to motored parts,pumps, air compressors,fans, and other equipment. The measures that could be taken for ensuring the conservation of energy are: 

  1. Replacement, renewal and up gradation:Replacement of the old, outdated equipment and systems could further lead to less usage of electricity and energy consumption. This would help to reduce the expenses on the utility bills of the utility .The following Energy conservation measures (ECM) could be adopted:

Lighting controls with sensors and in-built timers 

Variable Drivers of speed could be adopted 

Treatment of pumping of water 

Automation the areas of construction 

  1. Reclamation and reconstruction:Repair of the broken down machineries would add life to the asset and thus facilitate reduction of the costs related to the maintenance (Mirzania, 2019). Such decisions would help in reducing the emission of carbon dioxide and other harmful gases and components into the air.
  2. Improvement and enhancement of the equipment: Installation of equipment which would aid in the process of energy conservation could be used such that the value of the assets could be increased thereby improving the comfort of occupancy of the various systems involved (Andersson, 2019).

3. Energy data Analysis 

Energy analytics can be defined as the methods and the processes involved in the gathering of electrical and energy consumed data with the assistance of software for the purpose of assisting the energy suppliers to promote, analyse, supervise and optimise energy related Key potential indicators like costs related to production, consumption, distribution. 

 Electricity Consumption Frequency

(Source: Developed by Learner)

 Natural Gas Consumption Frequency

(Source: Developed by Learner)

The figure 3 shows that the electricity consumption by the company has not much difference in the frequency table. The cost has the amounted between 15000000000 to 2000000000 on the electricity consumption. The figure 4 shows the frequency table based on the consumption of the Natural Gas. The frequency has various changes in the incresement and the decreasment. The higher amount has been 9800000 and the minimum cost has 210000 in the area of the consumption of gases in uses of the energy.

(Refer to Appendix 1)

Statistical Analysis 

 The analysis of the electrical and the other sources of energy can be assessed for the purpose of the calculating the various indicators of statistics.

Electricity Consumption



Standard Error




Standard Deviation


Sample Variance
















Confidence Level (95.0%)


Table 1: Electricity Consumption Frequency

(Source: Developed by Learner)

Natural Gas Consumption



Standard Error




Standard Deviation


Sample Variance
















Confidence Level (95.0%)


Table 2: Natural Gas Consumption Frequency

(Source: Developed by Learner)

The table one shows the consumption of the electricity (KWh) has the mean ratio at 3130366 and the standard error has 19460.85. The confedencial level has 42833.05, it means the consumption of the coelectricity has been very much frequent. The table shows the frequency of the Natural gas consumption in the energy consumption area. The confedencial level has 1406.737 of the uses and the mean ration has 3163.75 The natural has has the less consumption of the uses of energy in the company.

Risk Management Process 

The risk management process consists of the process of identifying the probable risks and assessing the risks, treating the risks and further reporting the risk by follow-up. The risks related to the conservation of the energy and the other sources such as the natural gas could be identified and various methods could be adopted for the purpose of mitigating those risks and safeguarding the objectives of the organisation with the motive of implementing growth and reliability in the decisions of the organisation (, 2019).

4. “The cheaper investment is usually not the most economical choice “

Thecheaper investments are not always the most economical investment decisions .Investments regarding the installation of the machineries and the energy conservation equipments could be taken not only from the perspective of promotion of growth and effectiveness but at the same it could not be from sources that provide low and cheap quality of such machineries as it leads to the disruption and excessive consumption of the time and energy. Such decisions could lead to the degrading the quality of the air in the environment and are a hindrance in the management ways of promoting a safer environment for the employees and the workers working in such factories and units (Hilorme, 2018). . The most economical choices that could be made are not always from the sources of investment that are cheaper but from the analysis of the best possible method after scrutiny and deep theory observation and implementing the correct methods (Reynolds,2018). According to the Energy Conservation Act, 2001, Energy audit of the company means the verification, analysis and the monitoring the uses of the energy, which may includes submission of the reports of the technical. It may contains recommendation to improve the energy efficiency for the benefit of the cost analysis.

The cost of the life cycle has the various conversation of the enery to measure the calculate using the method of the simple payback. The formula may be used,

Cost spend on initial



Saving per year in Manufacturing unit

Payback period


 £ 5,236.00

 £ 250.00

 £ 5,486.00

 £ 1,097.20


Air compressor

 £ 7,896.00

 £ 963.00

 £ 8,859.00

 £ 1,771.80


Motor Engine

 £ 10,000.00

 £ 2,365.00

 £ 12,365.00

 £ 2,473.00


Table 3: Simple Payback Period of Some Equipment

(Source: Developed by Researcher)

Simple payback period is a method to calculate life of an asset. Table 3 discussed about some manufacturing equipment and payback period and saving that enjoyed by company discussed. Payback period of Motor Engine has been highest among the equipment in above table.

Justifying the choice in making investment decisions.

The choice of investment could be made from the detailed picture of the organisation's long term and short term goals of the organization and the goals for which the industry stands for. The efficient and effective usage of equipment could be achieved from the proper allocation of resources into the management decisions (Yao, 2018). 


The energy audit report can be concluded after the detailed observation of the various equipment used in the manufacturing of organisation. The chemical industry and the amount of energy that they consume for conducting the daily operations can be harmful for environment. Energy could be used efficiently for effective performance from the various departments and units using reliable measures.


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